75% of Shoppers Would Pay More for Beauty Products to Get Personalized Online Shopping Experiences, Says New Survey

Shoppers, especially Generation Z, expect brands to embrace AI, diversity, inclusion, and hyper-personalization, according to Bolt's latest research

7 out of 10 Gen Z shoppers would pay at least 10% more on beauty products for personalization in their online shopping journeys

SAN FRANCISCO, May 31, 2023 /PRNewswire/ -- Bolt, a leading checkout technology company, today unveiled a new report which offers shopper insights for beauty and skincare brands hoping to improve their businesses. Like the entire technology landscape, AI is making a mark in the beauty industry—specifically with consumer expectations. The report—which consisted of a survey of over one thousand U.S. consumers—also found that brands are increasingly shifting beauty standards to accommodate a new generation of shoppers keen on products that are inclusive and hyper-personalized.

For brands investing in this digital shift, it's paying off. According to the report, 75% of shoppers would pay more for beauty and skincare products if they got personalized online shopping experiences. In fact, 72% of Gen Z consumers are willing to pay more than 10% for beauty products. Interestingly, 57% of Gen Z have the appetite to pay as much as 11-20% more for their beauty purchases if they involve custom and curated online shopping journeys. This marks an opportunity for brands to personalize in order to create genuine connections with shoppers, especially younger generations.

So what's the secret? It's all about customer identity. Since 58% of shoppers said that diversity and inclusion are important when purchasing products from a beauty or skincare brand, it's clear that shoppers are increasingly demanding products that represent them—not just the same select groups of people that are traditionally served. By leveraging identity to understand a customer's behavioral and physical uniqueness—such as their specific skin type or skin sensitivity—beauty brands can create a more inclusive, customized customer experience and drive growth as a result.

Customer identities can help brands harness the full power of AI and other new technology. The report found that 62% of shoppers—including a whopping 80% of Gen Z—are more likely to buy a beauty product if they can use tech to land on their perfect formula. Perhaps even more strikingly, 43% of shoppers would rather shade-match for foundation through AI online than test in-store. Interestingly, around half of the Gen Z, Millennial, and Gen X cohorts prefer shade-matching with AI online than in stores—whereas an overwhelming 70% of the Baby Boomer and Silent Generation cohorts would rather shade-match in stores than online. These insights paint a clear picture of the role that AI and personalization can have in providing a curated shopper experience that's digital, accessible, and inclusive.

"For brands to stay ahead, it's all about getting personal," shared Shilpi Narang, SVP of Customer Experience at Bolt. "Retailers are clamoring for new ways to know and recognize their shoppers, and they're learning that personalization is impossible until they identify their shopper. With Bolt, brands can seamlessly log in more of their shoppers, building deeper connections with them and personalizing their buying experience—leading to higher conversion and most importantly, greater lifetime value."

By truly understanding shoppers' identities, skincare and beauty brands can create tailored experiences that resonate and foster a deeper sense of loyalty with their target audiences. This represents an engaging opportunity for beauty and skincare brands to capture the 45% of shoppers who have not purchased a product because of the lack of personalized options.

For more beauty report insights, visit bolt.com/lifetime-beauty-report.

Methodology
Bolt's findings, in partnership with YouGov, are based on the results of an online survey that was fielded May 15 - 17, 2023 on 1,038 adults in the U.S. who have shopped for a beauty and/or skincare product online within the past six months. This group of survey respondents was comprised of 53% female and 47% male participants; 10% Gen Z, 35% Millennials, 27% Baby Boomer, and 3% Silent Generation. The figures have been weighted and are representative of all US adults (ages 18+).

About Bolt
Bolt makes the business of checkout shockingly simple. By offering frictionless shopper recognition, account creation, and a secure, one-click checkout, Bolt helps retailers build long-term relationships with their customers and increase conversion. At the center of it all is the rapidly growing Bolt network, which connects hundreds of customer-centric retailers such as Fanatics, Revolve, and Casper to tens of millions of shoppers. Bolt's universal account network is the only solution that works within retailers' native checkouts—allowing them to keep their brands front and center while logging in more shoppers to offer a personalized shopping experience and a seamless checkout. To learn more, visit bolt.com.

SOURCE Bolt